NBHC taps banks for credit against WRs

KOLKATA: Multi-Commodity Exchange (MCX) has pitched in for more bank credit against warehouse receipts (WRs). Taking a cue from MCX’s intention, the initiative has been taken up by National Bulk Handling Corporation (NBHC), an associate of MCX, which is entrusted with warehouse management, primarily related to commodities futures trading on the exchange platform.

In doing so, NBHC is in the process of forging tie-ups with 8-10 banks. The purpose is to arrange finance to commodity brokers who need to have working capital loans while stocking commodities in NBHC-accredited warehouses, till their delivery against futures contracts.

Bank loans, in this case, are sought against WRs issued by NBHC. To arrange bank credit for the purpose, it already has tie-ups with ten banks. NBHC has tie-ups with 10 banks for arranging loan facility for commodity trading. As part of the arrangement, these banks provide credit to commodity traders against WRs issued by NBHC.